4. What shall be the total income of Mr. Desai for the A.Y. 2024-25
Options
A` 8,78,000
B` 8,63,000
C` 9,20,000
D` 7,70,000
(2 Marks)
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Taxation - Income TaxMCQQuestion 5626 of 146
All Questions Correct Answer
✅ Option C — ` 9,20,000
All Options:
- A` 8,78,000
- B` 8,63,000
- C` 9,20,000 ✓
- D` 7,70,000 (2 Marks)
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Detailed Solution & Explanation
Let us compute the total income of Mr. Desai for Assessment Year 2024-25:
1. **Income from Business or Profession:**
- Mr. Desai is an Indian resident (assumed resident and ordinarily resident - ROR), hence his global income is taxable in India.
- Profit from Dubai business (controlled from Dubai) = .
- Loss from Delhi business = .
- Net business income = .
2. **Income from Winnings of Online Games:**
- Winnings from online games are taxable under Section 115BBJ / Section 56(2)(ib).
- Winnings in kind (6 shirts) are valued at their Fair Market Value (selling price) of per piece (excluding GST).
- Value of online game winnings = .
3. **Capital Gains on Gifted Shares:**
- The gift of listed equity shares to his son's daughter, Ms. Shanaya, is not treated as a transfer under Section 47(iii). Hence, no capital gains arise to Mr. Desai.
- The subsequent sale of these shares by Ms. Shanaya for generates a long-term capital loss. Since she is his son's daughter (granddaughter), any income/loss from the asset would be clubbed in the hands of her parents under Section 64(1A) (as she is a minor), not grandfather Mr. Desai. Thus, this does not affect Mr. Desai's total income.
4. **Interest on Electric Vehicle Loan:**
- Interest paid on EV loan = .
- While Section 80EEB provides a deduction of up to , Mr. Desai has opted to pay tax under the default tax regime (Section 115BAC), which disallows deductions under Chapter VI-A (except Section 80CCD(2) and 80CCH(2)). Thus, no deduction under Section 80EEB is allowed.
5. **Total Income:**
- Total Income = Net Business Income () + Winnings from Online Games () = .
Hence, **Option C** is the correct answer.
1. **Income from Business or Profession:**
- Mr. Desai is an Indian resident (assumed resident and ordinarily resident - ROR), hence his global income is taxable in India.
- Profit from Dubai business (controlled from Dubai) = .
- Loss from Delhi business = .
- Net business income = .
2. **Income from Winnings of Online Games:**
- Winnings from online games are taxable under Section 115BBJ / Section 56(2)(ib).
- Winnings in kind (6 shirts) are valued at their Fair Market Value (selling price) of per piece (excluding GST).
- Value of online game winnings = .
3. **Capital Gains on Gifted Shares:**
- The gift of listed equity shares to his son's daughter, Ms. Shanaya, is not treated as a transfer under Section 47(iii). Hence, no capital gains arise to Mr. Desai.
- The subsequent sale of these shares by Ms. Shanaya for generates a long-term capital loss. Since she is his son's daughter (granddaughter), any income/loss from the asset would be clubbed in the hands of her parents under Section 64(1A) (as she is a minor), not grandfather Mr. Desai. Thus, this does not affect Mr. Desai's total income.
4. **Interest on Electric Vehicle Loan:**
- Interest paid on EV loan = .
- While Section 80EEB provides a deduction of up to , Mr. Desai has opted to pay tax under the default tax regime (Section 115BAC), which disallows deductions under Chapter VI-A (except Section 80CCD(2) and 80CCH(2)). Thus, no deduction under Section 80EEB is allowed.
5. **Total Income:**
- Total Income = Net Business Income () + Winnings from Online Games () = .
Hence, **Option C** is the correct answer.
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